Deutsche Börse: New Equity Market Segmentation Completed - 382 Companies In Prime Standard, 411 Companies In General Standard - Private-Law Segments Neuer Markt And SMAX Will Close On June 5

With the migration of all former companies from the Neuer Markt and SMAX segments into the newly introduced exchange segments Prime Standard and General Standard, the new segmentation of the equity market at the Frankfurt Stock Exchange (FWB Frankfurter Wertpapierbörse), has been successfully completed. Deutsche Börse made the announcement on Tuesday. The last company listed in Neuer Markt will switch into Prime Standard on June 5 and the private-law segments Neuer Markt and SMAX will be closed on June 5. The new segments Prime Standard and General Standard have been in effect since January 1, 2003. In total 382 companies listed at FWB have decided in favor of Prime Standard and 411 for General Standard.

"The goal of the new equity market segmentation was to create optimal framework conditions for investors and issuers through high transparency standards and secure legal framework conditions. As a result, we have two attractive listing segments to offer issuers," said Rainer Riess, Head of Stock Market Business Development at Deutsche Börse. International transparency standards had first been introduced in Germany through Neuer Markt and SMAX, Riess said. "These international transparency standards live on in the new Prime Standard segment," he added. General Standard offers attractive and low-cost access to the exchange for companies with a primarily national focus.

Deutsche Börse had officially given notice that it would close the Neuer Markt and SMAX segments by December 31, 2003. In the meantime, all issuers have decided in favor of changing into one of the two new segments well in advance of the deadline. Roughly two-thirds of the former Neuer Markt companies decided in favor of Prime Standard, while about one-third switched into General Standard. About half of the SMAX companies moved into Prime Standard and General Standard, respectively.

The admission to Prime Standard is a prerequisite for inclusion in one of Deutsche Börse's selection indices. With the new index model, companies from technology sectors as well as firms from classical sectors are in an attractive peer group. Technology companies have the TecDAX and Technology All-Share Index as a showcase for their investors, companies from classical sectors are tracked in the MDAX, SDAX or Classic All-Share indices.